Consumer Behavior Issues - Essay Example

?Running Head: Consumer Behavior Consumer Behavior [Institute’s Consumer Behavior The business and corporations comprises of several departments that includes human resource, finance, and accounts, supply chain management, marketing and many more. These primary and fundamental components make a business and enterprises successful by the proper and efficient functioning of the departments. Marketing is amongst the departments that focus and emphasize on the recognition and classification of the needs and requirements of the consumers, ways and techniques that fulfils, elucidate and satisfy their needs, and strategies to uphold them in the future (Silk & Harvard Business School, pp. 3-8, 2006). A process engages and entails an extensive range of activities, such as the development of policies and approaches to boost the sales records, advertise, and create awareness about the products and services of the organizations. In addition, marketing also highlights on creating and building healthy, enduring, and substantial affiliations with the consumers, end users and the buyers, and establishing value not only for the customers but also for the organization (Silk & Harvard Business School, pp. 3-8, 2006). The recent and contemporary marketing concept brings into limelight the piece of information that with the fulfillment of the needs and wants of the target market or the customers, the organization is more likely to accomplish and achieve their goals and objectives. Furthermore, with the contentment of the customers in a more effective and persuasive manner than that of the competitors, the enterprise would get an edge over their competitors (Hoyer & Macinnis, pp. 16-20, 2009). One of the important elements of marketing that facilitates the organization in acquainting and understanding the buying patterns of the products and services of the customers. Many of the important questions that includes when, why, how and where people have a tendency to buy a particular product or service come under the analysis and examination in consumer behavior. Furthermore, the study of consumer behavior will assist the businesses and organizations not only to attract new customers, but will also support in retaining the old and current customers that will eventually lead the organization to survive and sustain in the distant future (Silk & Harvard Business School, pp. 47-53, 2006). In addition, the study of consumer behavior also helps and endeavors to comprehend and identify the factors on which the decisions of the customers depend and rely on made either on individual basis or in groups. Therefore, it is considerably an imperative and vital feature of marketing management segment. According to the definition, consumer behavior is “The totality of consumers’ decision with respect to the acquisition, consumption, and disposition of goods, services, activities, experiences, people, and ideas by (human)decision-making units (over time)” (Hoyer & Macinnis, pp.3, 2009) Data resulting from the demography such as age, gender, income, education, behavioral temperament are they key distinctive and distinguishing characteristics used in the research of consumer behavior. Moreover, how the families, friends, reference groups, culture, and community play a dominant and persuasive role are also the principal and prime attributes in the studies and evaluations of consumer behavior. As the study of the buying pattern of the customers is a multifaceted and complex process where numerous aspects influence and affects the pattern, therefore, huge amount of money and a lot of time comes under spending and consumption by the enterprises and their marketing departments (East & Wright & Vanhuele, pp. 3-10, 2008). Thus, this practice comes under performance in order to identify and distinguish the causes of the decisions on which the consumers make their purchasing of a particular product or service. Interests, actions and behaviors, like and dislikes, perceptions, beliefs, and communication and dealing with the society and its surroundings articulate the way a person spend his life. Every individual has its own set of choices and preferences, have diverse and dissimilar lifestyle patterns, and behave in a different manner from other people even if they all belong to the same cultural background, social class/group, or occupation. The decisions that manipulate the buying pattern of an individual depend upon all the mentioned factors (East & Wright & Vanhuele, pp. 117-125, 2008). More to the attribute of consumer behavior, an individual performs different jobs, functions, and activities as he or she come under affiliations to various groups such as family, associations, and institutions. These social groups have a strong influence on the decision-making process of the purchasing of any product or service (Loudon, pp. 222 & 231-233, 2001). Economic circumstances and social class is another leading factor that leaves an indelible impact on the verdict of acquisition of a particular product or service. It can come under well explanation with the example that when people are experiencing a financial crisis or short of money, they tend to spend less money on high-price and premium restaurant feasts. Therefore, it gets important for the organizations to keep a close watch on the income level and reserves of an individual in order to know their choices of buying (Loudon, pp. 217-218, 2001). The decision making process of any individual depends upon few factors that include need recognition, information search, evaluation of alternatives, purchase and post purchase behavior. When a person feels about the need of a particular product or service, he or she searches for all the information including both internal and external that is accessible and obtainable to them. Based on the existing information, the person looks for the best alternative or the product that catches the attention of the individual and opts to purchase the best-attracted product. If the needs of the customer come under satisfaction, the consumer stays on the particular product, else the feeling of dissatisfaction leads to purchase of another product or service (Loudon, pp. 481-483, 2001). While looking at the influencing factors that affect the buying behaviors, one of the significant and substantial case in point is the purchasing of the automobile by the male gender of the society. Several and dynamic factors that influence the decision making process of the purchasing of the automobiles embrace the emerging technological advancements in the automobiles, the consumption of fuel, costs associated to it, reliability or credibility, safety & security and the affect that it creates on to the environment. Economic and social factor are another leading aspects that influences the decisions of men as to what model and make would they go for while making a car purchase (Illmer, pp. 9-15, 2009). Again, a different pattern of buying of automobiles by men has come under observation and it differs with the age factor. Men of younger age look for fuel saving and price as their prime and basic requirement. However, middle-aged men who are financially well stable tend to go for reliability, brand name, and safety as their fundamental preference (Illmer, pp. 9-15, 2009). Although the needs and desires are the primary influential sources for the purchase of an automobile, however, demographics features such as income, education level, number of family members also play a great deal of importance. It has come under surveillance at many occasions that those men with high income prefer to have a big, expensive, and luxurious car (Illmer, pp. 9-15, 2009). However, the recent studies and researches prove the fact that due to the global economic instability and rising prices of gas, cost and fuel efficiency are the two factors that are on the top priority for any customer in the twenty-first century. According to few other studies, it has come under observation that the complementary remarks of family and friends also play an important role in the decision-making process of the automobile purchase. Eco-friendly automobiles that produce less pollution have also become the principal preference in the recent times (Illmer, pp. 9-15, 2009). The study of consumer behavior becomes the foundation stone on which strategies for marketing campaigns and promotions come under development so that the marketers are well able to understand the needs and wants of the customers. Moreover, the organizations would be in a better position to attract the new customers and catch the attention and interest of the existing customers. With this process, the organizations get the opportunity to gain competitive advantage over their competitors, they are able to uphold their status and brand value in the market for a protracted time, elevate the ratio of gain on revenues, and extended customer base in comparison to the competitors (Illmer, pp. 9-15, 2009). As automobile industry is more concerned with the brand loyalty rather than selling the product, therefore, automobile manufacturers develop policies that provide the customer with after-sales service on a long-term basis in order to completely satisfy the needs of the customers and initiate a step towards the development of the brand loyalty from the customers (Illmer, pp. 9-15, 2009). As the focus of today’s people is towards the development of an eco-friendly environment, therefore, with the different and diverse advertising campaigns and promotional activities, the organizations will have the option to communicate their vehicles designed as green vehicles. In addition, these will not only leave a dramatic and radical influence the customers’ perceptions but will protect the environment as well and even this message can become a source of attraction, which may even lead to the competitive edge over others (Illmer, pp. 9-15, 2009). With the technological boom in the modern world, this has increased the usage of the technology, particularly the use of internet has become one of the salient, and chief features of the innovative technology that almost everybody is aware. Organizations and manufacturers can make the most from this technological advantage and can promote their automobiles on the internet pages that include the advertisements on email browsers (Illmer, pp. 9-15, 2009). This will eventually raise the familiarity amongst the people and with the recurring postings of such advertisements; the customers will have a stronger recall memory for the particular product. This will act as a prominent and persuasive role at the time of making the decision for purchase of an automobile (Illmer, pp. 9-15, 2009). From the above discussion, it can come under sound wrapping up that consumer behavior emphasize on the consumers’ buying pattern of products, services and experiences in order to fulfill and satisfy their desired needs and wants. Moreover, the study of consumer behavior also assess the overall effect of these buying and purchasing patterns on to the consumers’ lives and community on whole. As times pass by, the world is growing and improving due to several reasons, thus made the businesses to prosper on a global platform. This globalization has made the research and studies of the consumer behavioral pattern on a universal and comprehensive raised area. Consumer behavior is an integral segment of the marketing management that helps the organization to flourish, develop a strong and vast customer database, and have a competitive advantage over other corporations. References East, Robert & Wright, Malcolm & Vanhuele, Marc. 2008. Consumer behaviour: applications in marketing. SAGE Publications Ltd. Hoyer, Wayne D. & Macinnis, Deborah J. 2009. Consumer Behavior. Cengage Learning. Illmer, Stephen. 2009. Chances and Restrictions of Measuring Consumer Behavior in the Automotive Industry. GRIN Verlag. Loudon. 2001. Consumer Behavior: Concepts and Applications. Tata McGraw-Hill Education. Silk, Alvin J. & Harvard Business School. Press. 2006. What is marketing? Harvard Business Press. Read More